Universal Credit is designed to make you better off in work. To see how much better off you would be, look at the work allowance tables below.
This is the amount of extra money on top of Universal Credit you can earn each month without any deductions. After that limit is reached you still get to keep 37p in every pound.
If your Universal Credit award contains a Housing Costs element, your work allowance will be the lower work allowance in the table below. If it doesn’t, your work allowance will be the higher work allowance.
Sam is a single parent with two kids. Her monthly UC payments were £1,500 to cover everything including rent but she’s just got herself a job. Now she’s earning £1,200, so where does that leave her? On the old system, she’d keep her wages but have almost all deducted from her benefits. To calculate UC, she initially loses all £1,200 from the £1,500 UC payment but now she also keeps a £192 allowance plus 37p in every pound after that (which comes to £372.96).
So, she’ll have her wages and also receive the £300 difference between benefits and
earnings plus £192 plus £372.96. By the end of the month, she’ll receive £2,064.96. She is £564.96 better off.
To check your personal situation, and whether you would be better off in work, try this benefit and budgeting calculator for free by clicking here.
NB figures correct as of 7 January 2018. Amounts may have been revised.